Aker BP, a merger of Norwegian energy companies and a subsidiary of BP, said Friday it raised its guidance for output but lowered it for production costs.

One of the first companies out of the gate with second quarter results, the company said production costs were $121 million, up from $39 million, though total income of $595 million was nearly twice what it was last year, mainly because of the tie up with the Norwegian subsidiary of BP.

"Aker BP continued to deliver solid performance in the second quarter with stable operations, efficient drilling operations and development projects progressing according to plan," CEO Karl Hersvik said in a statement. "The company continues to build on a strong platform for further value creation."

The company reported first quarter production of 145.3 million barrels of oil equivalent, an increase of 14.8 percent from the previous quarter. Most of the company's output came from the Alvheim license area, which draws oil using a floating production facility from four fields in the greater region.

Aker BP holds stakes in some of the more promising prospects offshore Norway, including the giant Johan Sverdrup oil field. Production in June began at the Gina Krog field offshore Norway and the company said it expected output to accelerate during the year at the larger Edvard Grieg field.

The company said Friday it expects to produce between 135 million barrels of oil equivalent and 140 million barrels of oil equivalent per day for all of 2017, an upward revision of about 5 percent. Full-year production costs were estimated at $10 per barrel of oil equivalent, a downward revision of about 9 percent.

Spending on exploration for the quarter was $61 million. For the year, the company left its plans unchanged, allocating between $280 million and $300 million for exploration spending.

Tweet

Libya trains regular army to 'do away with militias'
Gharyan, Libya (AFP) July 14, 2017
Under a blazing sun at a military centre in western Libya, dozens of young recruits learn to march in formation, as authorities train the country's first regular force since its 2011 revolution. Another makeshift camp has been set up nearby to train future soldiers. On the menu: jumping, climbing, crawling and scaling ropes. "This basic training marks our passage from civilian life to mi ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only